RIYADH: Saudi Lime Industries Company (SLIC) has signed a conditional binding agreement with Astra Industrial Group (AIG) and Tharawat Mining Company (TMC) to acquire 100% of the shares of Astra Mining Limited Company (AML), a leading producer of quicklime and hydrated lime in Saudi Arabia.

The deal, which is expected to be completed within three months, is valued at up to 164.6 million riyals, comprising 35 million riyals for the company shares and 129.6 million riyals for the settlement of AML’s debt to local banks.

According to Saudi Lime Industries, the acquisition aims to expand its activities and operations, support its strategic plans, and increase its sales by boosting its production capacity to meet the demand for quicklime in both domestic and international markets.

As part of the agreement, AIG will grant SLIC the right to use the name “Astra Mining” for a transitional period of six months after the completion of the transaction. The agreement also includes customary representations and warranties from the sellers, as well as their commitment to allow SLIC to conduct due diligence procedures and studies before finalizing the deal. SLIC also retains the right to terminate the agreement in case of a material breach of the representations and warranties.

AML’s authorized activities include operating quarries and sand or gravel mines, test drilling for mineral exploration, and manufacturing sound and heat insulation materials. The company’s revenue for the fiscal year 2022 amounted to 33.9 million riyals, down from 37.1 million riyals in 2021 and 31.6 million riyals in 2020.

Saudi Lime Industries expects the financial impact of the deal to appear during the second quarter of the fiscal year 2024.